It was part of a rally driven in part by hopes for a green wave that would lead to more federal support for Renewable energy, as Joe Biden has called for to wipe carbon emissions from the grid by 2035.
“It’s just a sign that renewables will be a faster growing, more affordable solution. There’s no denying that anymore,” Sunrun co-founder and CEO Lynn Jurich told CNN Business.
The Vivint takeover meant Jurich was juggling a multibillion-dollar acquisition and her usual assignment as a public company CEO – while working from home on time. pandemic happened with two young children
Jurich, 41, said: “We are all struggling with the balance between work and life. Children are the hardest part.” “I was able to spend more time with my kids because I worked from home. It had good days and bad days, like everyone else.”
Investors flocked to buy Sunrun stock in the hope that the buyback, along with more favorable policies outside of Washington, would boost the company’s outlook.
“The Biden platform is very suitable for renewable energy, especially solar energy,” said Sophie Karp, senior analyst at KeyCorp.
“Biden is priced,” she said. “I definitely think we’ll see the disappointment of recreating names if he doesn’t win.”
Jurich, Sunrun’s boss, has downplayed the impact of politics on the industry’s future.
“In terms of running, it’s interesting that Solar has huge bipartisan support,” she said. “That encourages us no matter which way the election goes. Both results support the business.”
Elections can decide the fate of tax credit
“The expansion of tax credits under Democrats, which people are increasingly pricing in this year, could be worth a lot,” said Michael Weinstein, an analyst at Credit Suisse. “It will drive growth and make solar energy more competitive.”
Weinstein stressed, however, that renewables – and in particular solar – no longer need help from Uncle Sam to compete with fossil fuels. That’s because the costs of building renewable energy have come down.
“Solar is ready to stand on its feet,” he said. “It doesn’t need tax credits or federal assistance.”
“It’s a person who creates a lot of jobs. And that’s one of the only federal policies that will help us tackle the carbon reduction problem in the electricity system,” Jurich said. “If it is not renewed, we will continue. The market is going nowhere.”
Solar energy is on the rise as doubts about fossil fuels are growing
Regardless of the outcome of the election, analysts expect investor interest in renewable energy to remain due to the influence of the ESG movement.
Weinstein, an analyst at Credit Suisse, said he is responding to requests from money managers in the oil and gas sector who are under pressure to diversify their portfolios to halt. There is a long-term risk that fossil fuels will be replaced by renewable energy.
“It brings more money to the ecosystem,” Weinstein said. “And more money sometimes means higher prices.”